Ethereum Breakout Faces Key Resistance Zone Amidst Short-Seller Pressure
Ethereum has seen a significant surge in price over the past 24 hours, rising by 18% to $2,252.80. This increase in value has also been accompanied by a sharp rise in trading volume, with a 402% jump in activity.
The momentum behind this rally is evident from the technical indicators, with the Relative Strength Index (RSI) reaching 92.14 and the Moving Average Convergence Divergence (MACD) increasing sharply. However, some analysts warn that the price may be over-extended, citing the importance of holding above $2,003 to maintain the new structure.
The breakout above this level has brought Ethereum into a critical zone where fresh demand must absorb overhead supply. The next key area of resistance is around $2,636, but the immediate focus is on the $2,431-$2,500 range, which has been a previous high-price area with significant trading volume.
The rally also faces opposition from short sellers, with two Hyperliquid whales holding combined shorts of 50,838 ETH worth roughly $98 million. If buying interest persists, forced short closures could reinforce demand and potentially push the price towards the next resistance level.